Applicant
Otago Land Company
Case number(s)
200520054
Decision date
Type
Decision
Decision number200520054
Application number200520029
Date12 September 2005
Offeror/applicantOtago Land Company
Ultimate applicant beneficial ownership56.89 percent - United States of America, GMO Forestry Fund 7 International LP
26.18 percent - United States of America, GMO Forestry Fund 7-B LP
16.93 percent - United States of America, GMO Forestry Fund 7-A LP
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Ngai Tahu Forest Estates Limited of New Zealand
Business activitiesForestry
Details of land involved22,415.79 hectares of freehold situated at Otago Coast Forest and Berwick Forest, Otago being CTs 195169, 195170, 195171, 195168, 195164, 195165, 195166, 195138, 195139, 195149, 195150, 195147, 195140, 195141, 195142, 195143, 195146, 203348, 203349, 203350, 203351, 203352, 220126, 253707, 253708, 253709, 244201, 244202, 250502, 250503, 250204, 250506, 250507, 250508, 250510, 250511, 250512, 250513, 250515 and 250516 Otago Registry), subject to long term registered Forestry Rights pursuant to the Forestry Rights Registration Act 1983 in favour of Wenita Forestry Limited.
Regions involvedOtago
Total considerationCONFIDENTIAL
Consent Sought - 1995 Regs

To acquire:

  1. an estate or interest in land which the consideration for the land exceeds $10 million; and
  2. an estate or interest in land which together with any associated land exceeds 0.4 hectares and includes/adjoins land that exceeds 0.4 hectares held for conservation purposes; and
  3. an estate or interest in land which together with any associated land exceeds 0.4 hectares and includes/adjoins land that exceeds 0.4 hectares which is provided as a reserve, a public park, for recreation purposes, or a private open space; and
an estate or interest in land which together with any associated land exceeds five hectares in area.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the Applicant has business experience and acumen relevant to and is demonstrating financial commitment towards the investment.  The Overseas Investment Office is further satisfied that the persons who exercise control over the Applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987.

The Applicant is an investment fund established and managed by Renewable Resources LLC for investment in timberlands outside of the United States of America.  Renewable Resources LLC manages international forest investments including approximately 27,000 hectares in New Zealand comprising Crown forestry licences, forestry rights, leasehold and freehold land.

The Applicant proposes to acquire the freehold interest of the subject land.  The trees on the land are owned by Wenita Forestry Limited (Wenita) and the rights secured by registered Forestry Rights.  The Applicant’s parent, Fund 7 Foreign, LLC is a 38 percent shareholder of Wenita.  The proposal is likely to result in further stability with the land underlying the forestry rights being owned by one of Wenita's shareholders.  From Wenita's perspective having the Applicant as the landowner will give it added security to invest in silviculture, infrastructure, and replanting.

The proposal is likely to result in the following benefits:

  1. the creation of new employment opportunities;
  2. the introduction of development capital; and
  3. increased efficiencies to Wenita's forestry operations on the subject land.
ContactCarrie Follas
Phillips Fox
P O Box 160
AUCKLAND